The minimum wage is set above the equilibrium wage rate. Does the minimum wage create inefficiency?
A) Yes
B) No
C) Only if the supply of labor is perfectly inelastic
D) Only if the supply of labor is perfectly elastic
E) Only if employment exceeds the efficient amount
A
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Briefly describe the following types of financial intermediaries:
1. Commercial bank 2. Investment bank 3. Mutual fund 4. Hedge fund 5. Pension fund 6. Insurance company
A situation in which one nation produces good A using labor more intensively (relative to capital) than good B and a second nation, producing good A, uses capital more intensively (relative to labor) than good B is called:
A. a reversal of factor intensities. B. a paradox of factor intensities C. backward technology. D. micro intensity.
Theatres charge lower prices for a matinee and usually don't accept coupons for the night showing of movies because
A) consumers that attend the matinee have a higher price elasticity of demand. B) consumers that attend the night show have a lower price elasticity of demand. C) it increases profits compared to charging a single price. D) All of the above.
All of the following are possible characteristics of a monopoly except:
A) there is a single firm. B) the firm is a price taker. C) the firm produces a unique product. D) the existence of some advertising.